More people are looking towards safe-haven assets to protect against rising inflation. Black people should consider investing in physical gold, U.S. Treasury bonds, and stocks focused on essential goods and services. You may also want to consider buying different currencies that are strong against the US dollar and the savvy use of real estate.
Pew Research Center reports that only 39% of Black families directly or indirectly owned stock compared to 66% of white families. Online platforms make it easier to get involved in stocks, and a safe-haven rule is to focus more on investing in essential goods like utilities and healthcare, as they’ll always be needed regardless of the economy. From metals to currencies, there are several ways a Black household can diversify its investment portfolio.
How Is Inflation Affecting Investments?
During high inflation, the purchasing power of cash goes down. As a result, all returns on fixed-income investments also decline. Just having cash sitting in a traditional savings account will see less value if the interest rate doesn’t match or outpace inflation.
Companies with high purchasing power may pass these higher costs onto customers, so they can still grow their revenues. Some landlords can fare well in certain areas, as property values and rental income tend to rise with general price increases.
Source: Inflation worries push more households to rethink safe-haven assets
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